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Income Inequality, Status Seeking, and Consumption

Jin, Ye; Wu, Binzhen; Li, Hongbin - 2010

Using the Chinese urban household survey data between 1997 and 2006, we find that income inequality has a negative … inequality can strengthen the incentives of status-seeking savings by increasing the benefit of improving status and enlarging … the wealth level that is required for status upgrading. We also find that the negative effect of income inequality on …

Persistent link: https://www.econbiz.de/10015221527

Life-Cycle Consumption: Can Single Agent Models Get it Right?

Bick, Alexander; Choi, Sekyu - 2011

cross sectional inequality in consumption originating from the second model, even after controlling for household size using … parameterization. We find a similar number for total cross sectional inequality. …

Persistent link: https://www.econbiz.de/10015225729

Life-Cycle Consumption: Can Single Agent Models Get it Right?

Bick, Alexander; Choi, Sekyu - 2011

Persistent link: https://www.econbiz.de/10015225962

Life-cycle consumption: can single agent models get it right?

Bick, Alexander; Choi, Sekyu - 2011

In the quantitative macroeconomics literature, single agent models are widely used to explain ``per-adult equivalent'' data, which are obtained at the household level. In this paper we suggest a simple framework to understand the sources of bias when these models are used to make predictions for...

Persistent link: https://www.econbiz.de/10015226894

Heterogenous intertemporal elasticity of substitution and relative risk aversion: estimation of optimal consumption choice with habit formation and measurement errors

Natalia, Khorunzhina; Wayne Roy, Gayle - 2011

This paper investigates the existence and degree of variation across house holds and over time in the intertemporal elasticity of substitution (IES) and the coefficient of relative risk aversion (RRA) that is generated by habit forming preferences. To do so, we develop a new nonlinear GMM...

Persistent link: https://www.econbiz.de/10015229051

Revisiting the Effect of Household Size on Consumption Over the Life-Cycle

Bick, Alexander; Choi, Sekyu - 2012

Although the link between household size and consumption has a strong empirical support, there is no consistent way in which demographics are dealt with in standard life-cycle models. We study the relationship between the predictions of the Single Agent model (the standard in the literature)...

Persistent link: https://www.econbiz.de/10015234090

From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages

Yurko, Anna - 2008

predictions for mean and median ages of vehicles. The model predicts that higher levels of income inequality lead to older vehicle …

Persistent link: https://www.econbiz.de/10015261221

Micro-level Estimation of Optimal Consumption Choice with Intertemporal Nonseparability in Preferences and Measurement Errors

Natalia, Khorunzhina; Wayne Roy, Gayle - 2011

This paper investigates the presence of habit formation in household consumption, using data from the Panel Study of Income Dynamics. We develop an econometric model of internal habit formation of the multiplicative specification. The restrictions of the model allow for classical measurement...

Persistent link: https://www.econbiz.de/10015250600

From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages

2008

This paper studies the relationship between consumer incomes and ages of the durable goods consumed. At the household level, it presents evidence from the Consumer Expenditure Survey of a negative correlation between incomes and ages of the vehicles owned, controlling for the size of the vehicle...

Persistent link: https://www.econbiz.de/10015230609

From income and consumption inequality to economic welfare inequality: the role of labor supply

Theloudis, Alexandros - 2011

This paper discusses the links between earnings, consumption and economic welfare inequality. It places emphasis on the … role of leisure and labor supply in the assessment of cross-household inequality and argues that the documented increase of … such inequality has its origin in the labor market. It only serves as an introductory work and, as such, it attempts to …

Persistent link: https://www.econbiz.de/10015231140